The Western Union Company (NYSE:WU) Receives $12.63 Consensus PT from Brokerages

Shares of The Western Union Company (NYSE:WU) have been assigned an average recommendation of “Reduce” from the eleven ratings firms that are currently covering the firm, Marketbeat reports. Three equities research analysts have rated the stock with a sell rating and eight have issued a hold rating on the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $12.63.

A number of research analysts have commented on the company. StockNews.com upgraded Western Union from a “sell” rating to a “hold” rating in a research note on Friday, October 25th. Barclays reduced their price target on Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a research report on Friday, December 13th. JPMorgan Chase & Co. lowered their price objective on shares of Western Union from $14.00 to $12.00 and set an “underweight” rating for the company in a research report on Tuesday, August 20th. Keefe, Bruyette & Woods reduced their target price on shares of Western Union from $13.00 to $12.00 and set a “market perform” rating on the stock in a research report on Monday, December 9th. Finally, UBS Group lowered their price target on shares of Western Union from $13.50 to $12.00 and set a “neutral” rating for the company in a report on Thursday, October 24th.

Western Union Trading Down 0.4 %

Shares of WU stock opened at $11.15 on Friday. Western Union has a twelve month low of $10.51 and a twelve month high of $14.19. The company has a market capitalization of $3.76 billion, a price-to-earnings ratio of 5.72, a PEG ratio of 1.51 and a beta of 0.86. The firm has a 50-day moving average price of $11.09 and a 200 day moving average price of $11.78. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 3.96.

Western Union (NYSE:WU) last released its earnings results on Wednesday, October 23rd. The credit services provider reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.02. Western Union had a net margin of 16.07% and a return on equity of 120.39%. The business had revenue of $1.04 billion for the quarter, compared to analysts’ expectations of $1.03 billion. During the same period last year, the company earned $0.43 earnings per share. The company’s quarterly revenue was down 5.6% on a year-over-year basis. Research analysts forecast that Western Union will post 1.77 earnings per share for the current fiscal year.

Western Union Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Investors of record on Monday, December 23rd will be given a dividend of $0.235 per share. The ex-dividend date of this dividend is Monday, December 23rd. This represents a $0.94 dividend on an annualized basis and a yield of 8.43%. Western Union’s dividend payout ratio is currently 48.21%.

Western Union announced that its Board of Directors has approved a stock repurchase plan on Friday, December 13th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the credit services provider to reacquire up to 27.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Quarry LP increased its stake in shares of Western Union by 52.9% during the second quarter. Quarry LP now owns 2,588 shares of the credit services provider’s stock valued at $32,000 after acquiring an additional 895 shares during the period. National Bank of Canada FI increased its position in shares of Western Union by 1.1% during the 2nd quarter. National Bank of Canada FI now owns 80,813 shares of the credit services provider’s stock valued at $979,000 after purchasing an additional 896 shares during the period. Dakota Wealth Management raised its stake in shares of Western Union by 1.8% in the 2nd quarter. Dakota Wealth Management now owns 56,066 shares of the credit services provider’s stock worth $685,000 after buying an additional 979 shares in the last quarter. Abich Financial Wealth Management LLC lifted its holdings in shares of Western Union by 31.1% in the second quarter. Abich Financial Wealth Management LLC now owns 4,316 shares of the credit services provider’s stock valued at $53,000 after buying an additional 1,024 shares during the period. Finally, Envestnet Portfolio Solutions Inc. boosted its stake in Western Union by 4.2% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 27,050 shares of the credit services provider’s stock valued at $331,000 after buying an additional 1,091 shares in the last quarter. Institutional investors own 91.81% of the company’s stock.

Western Union Company Profile

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices.